Oregon Mortgages | OR Closing Costs

Are you looking for an Oregon home in the heart of Portland, in Eugene off of Interstate 5, or in beautiful Coos Bay? Whatever your OR home-buying needs, we’re here to help supply you with valuable mortgage information, tips, and lender recommendations. The mortgage process can be intimidating, especially for first-time homebuyers. Don’t become overwhelmed! Rest assured that you can rely on us to answer those confusing home loan questions and help you to make sense of the mortgage process!

 

Managing Your Finances

If you plan to apply for an Oregon mortgage in the near future, try not to make large credit purchases prior to applying for the loan. Why? Oregon mortgage lenders determine the loan amount (i.e. type of home) you can afford by calculating your total amount of debt. Piling up more debt right before you apply for a home loan could limit your potential buying power.

 

Popular Oregon Mortgages

There are too many mortgage types to list here, so we’ve detailed three of the most popular Oregon mortgages for you.

  • Adjustable Rate Mortgage (ARM): An ARM is a flexible mortgage type that has an initial low interest rate. After a few years, however, the rate becomes adjustable and could increase or decrease according to market rates. An ARM is a good option for homebuyers who only plan to live in their new Oregon home for a short period of time (allowing them to take advantage of an ARMs low initial rate). It is also a good option for homebuyers wanting to purchase an expensive home that stretches their budget (the low initial rate offers more buying power).
  • Fixed Rate Mortgage (FRM): A FRM is popular among first-time OR homebuyers because of its simplicity and predictability. A FRM has an interest rate and monthly payment amount that remains fixed for the entire loan term (FRM terms are usually 30 years, but you can get a shorter or longer term if necessary). A FRM is a good option for OR homebuyers planning to live in their new home for more than 10 years, or for retirees on a fixed income.
  • Reverse Mortgage: If you are 62-years-old or older, you can apply for a reverse mortgage that allows you to convert home equity into cash. You may use the extra cash for anything you’d like, from home repairs, medical bills, or simple living expenses. Borrowers must repay the reverse mortgage when the home is no longer their primary residence (if the borrower sells the home, moves, or passes away).

 

Important Down Payment Information

A majority of Oregon lenders ask borrowers to put down 20% of their home’s total purchase price at the time of closing. If finances are tight, you can often negotiate the down payment percentage. Keep in mind, though, that a smaller down payment costs you more money in the long run due to interest costs.

 

The Ins and Outs of Closing Costs

When speaking with your OR mortgage lender, be sure to get a clear understanding of closing costs. Never agree to a closing cost estimate without a maximum fee guarantee. Since it is totally legal for lenders to add or change fees, it’s important to find an Oregon mortgage company that guarantees their fees and has no hidden costs.

 

We’ll be glad to help you find such an Oregon mortgage lender! After years of research, we have generated a pool of top-rated OR lenders offering affordable rates, guaranteed fees, workable terms, and superior customer service. So whether you’re looking for a home in Salem, a condo in Gold Beach on the Pacific Coast, or a split-level in Baker City near I-84, contact us today for free rate quote and we can make your Oregon home-owning dreams a reality!